India's largest poultry enterprise Suguna is to invest around $67.2 million in India, Bangladesh and Kenya. The proposed investment will be backed by International Finance Corporation (IFC).
Coimbatore-based Suguna is one of the leading poultry integrators in India with operations covering all areas of the poultry sector.
Suguna’s fully integrated operations cover broiler and layer farming, hatcheries, feed mills, and processing plants across 20 Indian states and one union territory, and have an overseas presence in Sri Lanka, Bangladesh, and Kenya. The main operating company under SHPL is Suguna Foods Private Limited (SFPL) in India, which generates over 97 per cent of the group’s revenues.
Suguna is planning capacity expansion, including the construction of poultry infrastructure including a hatchery, processing plant, poultry environment-controlled shed, premix plant, and related poultry assets, as well as incremental working capital financing, through a $42.9 million investment at SFPL in India to further expand its operations in northern and eastern India, primarily in Uttar Pradesh, Odisha and West Bengal and the construction of feed mills, breeders.
The company is also planning hatcheries in Bangladesh and Kenya through a $15.9 million investment in Suguna Food and Feeds Bangladesh Pvt. Ltd. (SFFBPL) in Bangladesh and a $8.4 million investment in Suguna Poultry (Kenya) Limited (SPKL) in Kenya in order to capitalise on the growing economy and expanding poultry sector in both the countries,.
IFC support will include a loan of up to $15 million and an INR denominated non-vonvertible debentures (NCDs) of up to Rs 180 crore (approximately $25 million) to SFPL in India;
The most significant, expected project-level outcome is the impact on the incomes of poultry farmers who participate in Suguna's outgrower (contract farming) model or use the group's inputs for independent poultry production, said the World Bank's investment arm.